Puma Q2 sales fall 4 percent

For the second quarter of 2013, Puma consolidated sales declined by 4 percent.

The gross profit margin fell from 49.1 percent to 46 percent. Operating expenditures declined by 11 percent during the second quarter of 2013. The EMEA region recorded a decline of 4.7 percent. For the first six months of 2013 consolidated sales decreased by 3.1 percent and gross profit margin was 47.7 percent.

For the second quarter, Puma’s sales performance in Eastern Europe bucked the current sluggish business trend in Europe, delivering mid-single digit sales growth currency adjusted. Russia in particular rose strongly. Sales in Turkey rose likewise. In the Americas sales softened by 1.3 percent in the second quarter of 2013. Sales in the US market decreased slightly. Sales in the Asia/Pacific region fell by 7.2 percent, declining in nearly all markets, although India continued to deliver another excellent quarterly performance.

During the first six months of 2013, sales in EMEA declined by 4.8 percent as major markets continued to underperform. However, the Americas performed much better, with sales being up by 0.2 percent. Asia/Pacific finished down by 5 percent for the first half of the year. Footwear sales in the first half of the year were down by 7.5 percent. Apparel sales retreated by 3.8 percent. Accessories, however, advanced by 11.4 percent.

Puma is based in Germany. Michael Laemmermann, Chief Financial Officer of Puma, said, “Despite sluggish performances in Southern Europe and the Far East, as well as currency headwinds impacting sales, Puma’s second quarter performance was in line with our full-year guidance. We have pushed forward with our transformation and cost reduction program and continued to reduce the number of underperforming retail stores. With our new chief executive and chief operating officers as well as global creative director onboard, we are well positioned to secure profitable, long term growth.”

Andy Koehler has been appointed Chief Operating Officer. Following the sales performance for the first half year 2013, Puma expects a low to mid single-digit decline in currency adjusted full-year net sales as well as pressure on the gross profit margin during the second half. It expects an increase in net earnings compared to 2012.